United Oil and Gas Seeks More Funds to Support Exploration in Jamaica

• United Oil & Gas plc, a London-based oil and gas exploration firm, is planning to raise £700,000 (approximately J$140Mn) through a share offer to support its operations, including activities in Jamaica.
• The company intends to seek shareholder approval for certain resolutions related to this fundraising at its upcoming annual general meeting in January.
• Earlier this month, United Oil & Gas suspended all non-core activities to preserve cash, including deferring discussions with potential offshore drilling partners in Jamaica until 2025. The decision to seek capital from the market reflects the company's strategy to bolster its financial position during this period.
• The Jamaican asset is a key opportunity for United Oil & Gas. An independent estimate valued its most promising reservoir at US$23Bn, with the potential to extract crude oil over 25 years. United has been exploring offshore Jamaica for several years but scaled back its operations this year after exiting Egypt due to currency-related challenges.
• United Oil & Gas has one year remaining on its two-year license extension, which expires in January 2026. The company is licensed to explore 22,400 square kilometres offshore along Jamaica’s southern coast, specifically in the Walton-Morant zone. In its exploration efforts, the company has conducted a series of 2D and 3D seismic surveys, which have uncovered substances resembling oil.
• However, to confirm whether the substances are crude oil or underground water, the company requires a test drill. This exploration effort remains a pivotal component of United’s strategy, given the substantial potential value of the Jamaican asset.

(Source: Caribbean National Weekly)